Despite lower bond yields, investors plunk funds in PH

Despite lower bond yields, investors plunk funds in PH

by UA&P News Desk on September 13, 2011 - 11:43 am

From GMANews.tv

Despite falling bond yields, trading in Philippine bonds and equities remains active, according to a joint report of a local investment house and a university think tank.

Investors are continuing the search for safe havens, feeding on what emerging markets are offering as the United States’ contends with its economic woes, said First Metro Investment Corporation (FMIC) and University of Asia and the Pacific (UA&P) in The Market Call, released Friday.

The Market Call contains FMIC and UA&P’s assessment of the Philippine securities market, in which the think tank and investment house said they are also wary of the Aquino administration’s low public spending in the first half and the economic slowdown in the same period.

“Nonetheless, we are increasingly nervous looking ahead. Philippine Gross Domestic Product (GDP) eased to 3.4% in the 2nd quarter, while local company fundamentals remain robust… valuations are not that encouraging, so is the activity of foreign investors,” FMIC and UA&P said.

“Foreign investors have sold our local equities market in August, and we believe that they will continue to do so in the near-term. Reason being is that the Philippine Stock Exchange Index’s resiliency presents an opportunity to take profits and at the same time compensate losses from other markets,” FMIC and UA&P noted.

Read full story on GMANews.tv, by Earl Victor Rosero »

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